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Tea quality affected

Uganda

Recent developments in Uganda have tea producers worried about the quality of tea being grown. They claim that growers increasingly show more concern for quantity rather than quality. Most growers name the absence of a regulatory organization as the main reason for quality decline.
The current situation results in completely unregulated competition since each of the 30 tea factories in Uganda uses its own grading and standards.

Bad weather slashes output

India

According to a statement by Peter Mathias, the chairman of the United Planters Association of Southern India (UPASI), bad weather is affecting tea production in the South of India for the fourth year in a row. Sales of orthodox teas have plummeted by more than 17% as a result of a sharp drop in supply in the orthodox category.
However, such development has had a somewhat positive effect on the realization price, which averaged 71.17 rupees (US$1.56) per kilogram in the period from January to June 2011, 1.92 rupees (US$0.04) higher than over the same period last year.

Urea shortage

India

The tea industry in Assam province has issued a warning stating that tea growers are experiencing severe fertilizer (particularly urea) shortages and the 2011 production will be compromised, unless shortages are addressed without delay.
Urea, the most widely used fertilizer for tea crop, is commonly applied in three “splits”: March-April, June-July and August-September.

Tea Fair in August

Hong Kong

The third edition of Hong Kong International Tea Fair (HKITF) is being organized by the Hong Kong Trade Development Council (HKTDC) and the Chinese Tea Culture International Exchange Association. In 2010, over 300 exhibitors from 15 countries and regions came in contact with over 10,000 trade buyers from 59 countries and regions. In addition, over 83,000 members of the public came to the open day, providing a meaningful opportunity to boost brand recognition and test-market new products.

Radioactive fears

Japan

The Yomiuri Shimbun is reporting that tea farmers in Kanagawa Prefecture, 300 km from the crippled Fukushima No. 1 nuclear power plant are facing conflicting views from different government ministries after after fresh tea leaves were found to have exceeded government limits for radioactive cesium.

Fake labels

Sri Lanka

After having launched new Ceylon Tea logos to promote its Geographical Indicators (GI) status and ozone friendliness Sri Lanka’s Tea Board is thinking of hiring an international agency to monitor the Ceylon tea brand with its Lion logo.to combat misuse and counterfeiting concerns,

Increased production

Sri Lanka

Despite a year-on-year downturn in April’s figures, tea production here is expected to set new records this season.

The Sri Lanka Tea Board Tea reports production of 28.5 million kgs in April, a 5.6% reduction compared to April of last year, noting that in 2010 a combination of high prices and good weather sustained output.

Iran payment feud

India

Under new banking directives made necessary because of US pressure payments by Iran for its Indian tea purchases may become difficult to make.

“Until December 27, 2010, the tea trade operations were smooth, however, post that, owing to the US pressure, India pulled out of the Asian Clearing Union, a system where it could settle payments with Iran,” C S Bedi, chairman, Indian Tea Association, was reported as saying by FnB News.

Climate clones

India

The Tocklai Experimental Station of the Tea Research Association plans to introduce two new drought and waterlogging resistant tea clones during November’s World Tea Congress.

“Apart from the high yielding variety and good quality, these clones are being prepared keeping in mind the change in climatic conditions,” a spokesman was quoted as saying in the Indian press.

Lipton grows

UAE

Unilever, one of the world’s largest fast moving consumer goods companies, revealed that it will be expanding its state-of-the-art Lipton tea manufacturing facility, located in Jafza in Dubai, to meet the rising demand for tea in the region.

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Quarter 4, 2011

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